ECB's Villeroy: Coronavirus crisis to leave inflation durably below 2% target

Eren Sengezer FXStreet

The coronavirus crisis is expected to leave the inflation durably below the 2% target, European Central Bank Governing Council member François Villeroy de Galhau said on Wednesday.

"Low inflation means interest rates should be kept low and liquidity abundant," Villeroy added. "Nothing is excluded in principle from an intellectual debate about more radical policy measures. Such theories can only be envisaged if there is a major downside risk to inflation."

Market reaction

The EUR/USD pair largely ignored these remarks and was last seen trading at 1.0864, erasing 0.23% on a daily basis.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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